Liquor Liability Insurance: Explanation Of Liquor Liability Insurance

Alcohol-related accidents can be serious and even deadly. If you are responsible for the liquor consumed at your place of business or event, be sure you are financially covered with liquor liability insurance. If an accident occurs as a direct result of the alcohol consumed at your dance club or wedding reception, you could be held financially responsible for the resulting expenses.

You may be liable if you were found negligent in serving of alcohol at your event or business and a patron became intoxicated and injured himself or someone else either on or off your premises. Liquor liability insurance is for private citizens who hold family events where liquor is served. It is also for businesses that sell or manufacture liquor.

A business’s premium is based on a number of factors, including:

  • The type of business.
  • The location of your bar or restaurant.
  • The amount of liquor sold.
  • The establishment’s history of citations and complaints.
  • Training courses attended by your employees.

A business can lower its liquor liability insurance rates by establishing a history of no alcohol-related problems or complaints. You can achieve this by:

Liquor Liability Insurance: Explanation Of Liquor Liability Insurance
  • Havng and enforcing strict policies with stiff consequences for patrons.
  • Train bartenders and servers in observing patrons and not serving intoxicated patrons.
  • Include a food menu.
  • Have designated driver incentives.
  • Encourage the use of public transportation and make announcements about the available alternatives for patrons to get home.
  • Train doormen and bouncers to identify potential alcohol-related problems as patrons leave the establishment.

A business must also abide by the state laws regarding the serving of alcohol:

  • No serving alcohol to minors.
  • Do not serve alcohol past the point of intoxication.
  • Train your servers in their legal responsibilities.
  • Implement proof of age policies.
  • Make information on government-enforced legislation available to patrons and staff.
  • Strict controls over inventory and hours you serve alcohol.

The Dram Shop Law originated in Texas in 1987 and it allows a person injured in an alcohol-related incident to sue the liquor server or seller for providing alcohol to the person that caused his injury. The law was then extended to allow the intoxicated person to sue the liquor server or seller. Liquor liability insurance is available in every state except Florida, Maine and Massachusetts.

Liquor liability insurance is expensive. However the price you may have to pay if you are found negligent in a drunk-driving lawsuit, can financially ruin you and your business.

Liquor Liability Insurance: What Does Liquor Liability Insurance Cover?

Liquor liability insurance will cover your financial responsibilities if you are found negligent in an alcohol-related incident that resulted in property damage, bodily injury or death.

Your liquor liability insurance policy will cover you and your business for a number of possible contingencies:

  • Assault and battery. A bar fight can be a rite of passage and can result in a serious injury. If your business involves the serving of alcohol, make sure you and your employees are insured against a lawsuit. Your bouncer and other staff members are at high risk for claims of excessive force when dealing with intoxicated patrons.
  • Defense expenses. Defending yourself or your business is expensive and there are pricey lawyer fees whether you win or lose; make sure you are covered so you can pay for your defense.
  • Court costs including a possible bail bond, a judgment or settlement and any expenses you may incur in the course of your defense.
  • Employees of bars, clubs and restaurants do drink while they are at work. Insure your employees as patrons.
  • A server inadvertently serves a patron past the point of intoxication.
  • Bodily injury. A patron that is injured in any way may hold you liable for injuries sustained on or off your property.
  • Mental damages. It is common for patrons to include mental anguish or psychological damage in their lawsuit; make sure your insurance will cover you.
  • Property damage. You can be held responsible for the repair or replacement of a patron’s property, including vehicle repairs in a resulting car accident.

A good insurance company will offer you and your staff training in the management of intoxicated patrons and the state liquor laws governing the sale and serving of alcohol.

Host liquor liability insurance will cover private individuals as well as event planners and caterers who do not directly serve or sell liquor but who do provide a venue and an event in which alcohol is served.

If you or your business is proven negligent through the serving of alcohol to minors or breaking any other government-regulated law, your liquor liability insurance will not cover your fines or any other related expenses.

Over the course of a private event or an evening at a bar or night club, situations arise that can put you at risk of being sued for negligence. Financially protect yourself and your business with liquor liability insurance.

Liquor Liability Insurance: Who Needs Liquor Liability Insurance?

Liquor Liability Insurance: What Does Liquor Liability Insurance Cover?

Alcohol is part of socializing. However too many people abuse alcohol to the point of being a serious danger to themselves and other people. Extensive property damage, serious bodily injury and even death, can be the result from too many martinis.

Anyone who is responsible for a party, event or business that is serving alcohol should carry liquor liability insurance.

If you have been put in charge of your daughter’s wedding rehearsal party, you will need host liquor liability insurance to financially protect yourself from any incidents occurring as a result of the alcohol consumed at the event. While most event venues have liquor liability insurance, some do not; find out if you need to purchase host liquor liability insurance. If you are serving liquor in your home, you will need liquor liability insurance.

A sponsor or host of an event that serves alcohol and includes a physical activity, such as a football game, is at high risk for a lawsuit resulting in bodily injuries and property damages sustained by intoxicated players.

A business that sells or serves alcohol needs liquor liability insurance. This includes:

  • Bars, dance clubs and pubs.
  • Adult entertainment venues.
  • Restaurants, fine dining, casinos and hotels.
  • Caterers, event planners and wedding coordinators.
  • Sport venues and bowling alleys.
  • Liquor stores, retail stores and wineries.
  • Liquor manufacturers, distributors and importers.
  • Golf clubs, country clubs, fraternities.
  • Event venues, halls and arenas.

A family or individual hosting a private event is responsible for the people attending their party and should have host liquor liability insurance, whether the event is at a private home or a public venue. A party can be any kind of celebration including an engagement, wedding, anniversary, baby shower, Bar or Bat Mitzvah, birthday, reunion, graduation, or family holiday get-together.

A business can also have a need for host liquor liability insurance if they decide to hold a function that involves the consumption of alcohol. These events can be a non-profit money-raising event, corporate executive party, company Christmas party, client entertainment, milestone celebration, and so on.

Alcohol-related incidents all too often result in serious damages, injuries and even death. The price is high for the one who is liable. Make sure you are financially protected when you are responsible for other people’s alcohol consumption.

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